Core Viewpoint - The company Bai'ao Saituo has successfully listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board, leveraging its "Thousand Mice and Ten Thousand Antibodies" plan and RenMice human antibody platform, but faces multiple risks including reliance on cost-cutting for profitability, high proportion of related-party transactions, patent infringement lawsuits, and significant unremedied losses [1][4]. Group 1: Financial Performance and Cost Management - From 2022 to 2024, Bai'ao Saituo's operating revenue steadily increased, with net profit turning from a loss of 602 million yuan to a profit of 33.54 million yuan, and achieving a net profit of 114 million yuan in the first three quarters of this year [6]. - However, R&D expenses significantly decreased from 699 million yuan to 324 million yuan, and the total number of R&D personnel dropped from 627 to 337, with dedicated R&D staff reduced from 58 to 5 [6]. - The revenue growth of 446 million yuan during the same period contrasts with a decline in R&D expenses of 375 million yuan, raising concerns about whether profitability improvements stem from cost-cutting rather than genuine business growth [6]. Group 2: Related-Party Transactions and Patent Litigation - The antibody development business, a key growth area for Bai'ao Saituo, has a compound annual growth rate of 58.26% from 2022 to 2024, with a gross margin exceeding 80% [7]. - Nearly 30% of the revenue in this segment comes from related parties, specifically from joint ventures such as Doma Pharmaceutical and its subsidiary, contributing a total of 170 million yuan, which accounts for 27.43% of total antibody development revenue [7]. - The core technology platform RenMice faces intellectual property risks, as a lawsuit was filed by He Bo Pharmaceutical in September 2024, alleging patent infringement, which could undermine market confidence in the company's technological independence [7]. Group 3: Unremedied Losses and Debt Concerns - As of the end of 2024, Bai'ao Saituo has accumulated unremedied losses of 1.754 billion yuan, with the company acknowledging the risk of returning to losses if R&D investments remain high or revenue growth does not meet expectations [8]. - The controlling shareholders, Shen Yuele and his wife, face significant debt obligations, needing to repay approximately 129 million yuan from 2025 to 2028, primarily relying on the liquidation of their H-shares in the company [8]. - The total compensation for the company's directors, supervisors, and key technical personnel from 2022 to 2024 reached 61.6072 million yuan, maintaining a high level despite the company's losses, which has raised inquiries from the stock exchange [8].

Meeting Overview - The company will hold its 2025 Fourth Extraordinary General Meeting of Shareholders on June 19, 2025, with both on-site and online voting options available [1][4]. - The meeting is convened by the company's board of directors and complies with relevant laws and regulations [1][3]. Agenda Items - The meeting will review several proposals, including financing lease transactions with Shudao Leasing and addressing unremedied losses that exceed one-third of the registered capital [3][7]. - Specific proposals require separate voting, and there are provisions for minority investors to vote independently [3][7]. Registration and Voting Procedures - Shareholders must register for the meeting by providing necessary documentation, including shareholder account cards and identification [4]. - Online voting can be conducted through the Shenzhen Stock Exchange's trading system and internet voting system, with detailed procedures provided [4][5]. Documentation - Relevant documents, including resolutions from the board and supervisory committee meetings, will be available for review [5].

Group 1 - The company held its tenth meeting of the fourth supervisory board on May 28, 2025, with all three supervisors present, ensuring compliance with relevant laws and regulations [1][2] - The supervisory board approved a proposal regarding unremedied losses reaching one-third of the total paid-in capital, with unremedied losses amounting to 43.9535 million yuan as of December 31, 2024 [1][2] - The proposal requires further review by the shareholders' meeting [2]

Core Viewpoint - The company has reported that its unremedied losses have exceeded one-third of its paid-in capital, necessitating a shareholder meeting for further discussion and action [1]. Summary by Sections Situation Overview - As of December 31, 2024, the company's consolidated financial statements show an undistributed profit of -691,075,989.19 yuan, while the paid-in capital is 490,298,992.00 yuan, indicating that the unremedied losses have surpassed one-third of the total paid-in capital [1]. Reasons for Loss - The primary reasons for the unremedied losses include: - Significant decline in profits - Impairment of goodwill from subsidiaries, particularly from Baile Lithium Battery - Investment losses recognized based on shareholding ratios [1]. Response Measures - The company is actively taking measures to improve its operational and financial conditions to offset previous losses, including: - Focusing on core resources and solidifying main business areas - Leveraging expertise in the petrochemical and new energy sectors to enhance research, design, manufacturing, and engineering contracting in new materials and energy industries - Strengthening management of subsidiaries to maximize business synergy and enhance profitability across various business segments - Adjusting product and market structures to stimulate customer demand and increase market share - Optimizing personnel structure and organizational efficiency through performance assessments and incentive mechanisms - Enhancing budget control and detailed management to reduce costs and improve operational vitality [1][2].